Becoming skilled at spotting BRRRR deals

6 Replies

Hey BP,

I hear a lot of good investors talk about analyzing deals everyday because it'll help them be prepared to spot good deals and jump on them when they see them. My question is how can I habitually practice running numbers on BRRRRs? How do people make offers on BRRRRs fast and accurately? Is it possible to run deals quickly from home? Thank you!

P.S. I realize in some instances, you'll probably want a contractor to give you estimates on repair costs before offering. But how can you practice and gain confidence in your ability to run the numbers on BRRRRs?

I was wondering the same thing! On an interesting note, I've found a local hard money lender who is very involved in the process. They will go look at the property, assess the before and after ARV, and let you know whether or not it is something they would be willing to do a hard-money lend for. Might be one avenue if you can tag along with people like that.

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Originally posted by @Noah McPherson :

@Steven Silbert Thanks for the advice! Just curious. This is your first BRRRR deal correct?

Haven't done the BRRRR yet! Used BP to find some local lenders and called them to find out how there process works. Which turned out to be a good idea as they vary more than traditional lenders. Waiting on a HELOC to go through first.

@Noah McPherson start by learning all of the numbers needed to run a BRRRR CALCULATION (rehab cost, tax's and insurance, closing cost, holding cost, rent)

While you can’t 100% accurately predict rehab you can learn local pricing for each line item and create a general guideline of rehab work. I recommend J Scott’s book on estimating rehab cost to give you a basic understanding.

PropStream and Rentometer are 2 great tools for looking up properties and running comps, learning a ton about properties in general, and seeing average rents for the area. While PropStream is $100 per month and Rentometer is $40 per year, if you are serious these are small investments to move forward and have access to powerful tools.